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Comment by chris macrae

Author: chris macrae (22)
Date posted: Fri, 29 Feb 2008 10:46:33 PST
Edited: Fri, 29 Feb 2008 11:17:19 PST
Comment on: yunus/macrae 33 year index of entrepreneurial untruths (0)
Feedback score: 0 +|-

ENTREPRENEURIAL SYSTEM FUTURE SHOCK In summary 33 years of top 10 entrepreneurial mistakes are:

1 Denying that 90% of the greatest innovations for humanity start small and deeply contextualised

2 Failing to scale up around win-win-wins -corollary this causes many life-critical inventions to be unprofitable as far as global accountants are concerned and so buried in some corporate lawyers patent desk.

3 Short-term analysis ruling alone is the enemy of entrepreneurship as well as intergenerational investment (eg pensions). Since 2000 the Unseen Wealth school of economics estimates that stockmarketed corporations are only compounding about 10% of wealth and health that all stakeholders including long term investors could be enjoying.

4 Oddly a different business model is needed if you are to leverage the service plus economy - one that invests in core people. This is still banned by tangible accounting rules where people must be booked in as costs. There is a priceless Charlie Rose interview of internet maven Ester Dyson where she says the USA is falling down the world league table in service plus sectors- the rising stars of hi-value service economy are India and bangladesh.

5 Yet more oddly, networks of systems require hi-trust partnerships if value multiplication is to be sustained. Recent interviews of big management consultancies suggest their partnering advice to clients is promise the potential partner a lot, tie up your legal small print, then deliver the least. Whether you feel that's a slight exaggeration, it is part of Dr Yunus' genius to have developed a new partnership model so that when his grassroots organisation partners a big global one it is impossible for the grassroots partner to get burned. That's how the social business molecule works to unite Future Capitalism partners.

6 Instead of short-term boxed-in backwards measures, the number 1 flow metric of true sustainability investment to govern is what future exponential up or down are we compounding. because much of the quality of a win-win-win or lose-lose-lose model is already a "relationship investment", bayesian maths can be used to map out the exponential curve any corporate system is spinning. Not to make leadership decisions conditional on the exponential track is strategically inept.

7 Unfortunately networks map out to be systems to the power N. This means that whole strings of interconnected organisations can collapse due to the weakest -eg how chains of dotcoms fell due to cross-selling to each other. We are living in an age where some sustainability crises may happen at the speed of 100-lose and yet those in charge of governance of large organisations are in most cases failing to track risk metrics proactively.

8 So while becoming a Yunus SBA (knowing how to over-rule wrong MBA maths) can be very good for ending poverty, its actually the best insurance that well off communities of youth can social action and business learn all about too.

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